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Home Forex Check Forex Rate Exchange rates: British Pound recovers against USD
Exchange rates: British Pound recovers against USD PDF Print E-mail
Written by Sam Coventry   
Thursday, 17 June 2010 13:46
Exchange rates latest: Euro strength continues, British Pound bounces back from overnight lows say foreign exchange brokers Tor FX.


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The Pound Dollar exchange rate is 0.074% higher with 1 GBP = 1.4804 USD at 1:15 PM in London.

The Pound Euro exchange rate is 0.330% lower with 1 GBP = 1.1975 EUR.

The Euro Dollar exchange rate is 0.406% higher with 1 EUR = 1.2362 USD.

Foreign exchange markets this morning witnessed all round Euro strength and a recovering sterling dollar exchange rate.

"The British Pound recovered against the Dollar this morning, bouncing back from an over-night low of $1.4650, approaching the highest level in a month above $1.48," says Adam Solomon at foreign exchange brokers Tor FX.

"The UK currency actually registered gains against 14 out of the 16 most actively traded currencies, after a government report showed that UK retail sales increased by more than initial forecasts in May," says Solomon.

Sales rose 0.6% in May, despite expectations of a more modest 0.1% increase, as shoppers stepped up purchases, despite rising unemployment and diminishing consumer confidence.

A report from the Nationwide Building Society yesterday showed that confidence fell to the lowest level since July 2008, as consumers became pessimistic on the prospects of the economy. Analysts believe the World Cup inspired improvement in sales won't last, however, as the Chancellor George Osborne prepares to unveil the extent of the budget cuts needed to rein in Britain's record deficit.
 
The Pound rallied 0.4% against the U.S Dollar after the report, but the UK currency has ebbed lower versus the Euro, after breaking through the pivotal trend support level at 1.2000.

Euro exchange rates


The Euro has once again benefited from renewed risk appetite and has rallied alongside equity markets.

"The Euro is (almost incredibly) still overvalued on a purchasing parity basis, and with the worries that continue to revolve the EuroZone, a big revaluation upwards might be too much to hope for just at the moment, there is serious resistance around 1.2350/1.2450," says Simon Denham at spread betting firm Capital Spreads.

Sterling has lost a bit of momentum against the Euro, as investors speculate that the Pound's rally to the highest level in 18-months may have been over-done.

"The Euro's tentitative gains against the Dollar has brought the single currency above $1.2295 this week, meaning that a move higher is likely, despite the escalating concerns surrounding the level of debt in Spain," says Solomon.

Although the EU disputed report in El Economista yesterday, the Bank of Spain's decision to publish the results of stress tests on the nation's lenders may prompt European member states to follow suit, as investors demand more disclosure of the risks on banks' books.
 
 
Last Updated ( Thursday, 17 June 2010 13:48 )
 

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